mineral resources

# A complete guide to mineral rights mortgage registration: operating procedures and pitfall avoidance guidelines under the new regulations. Mr. Li is the owner of a manganese mine in Guizhou. He recently signed a large order and needs working capital to purchase equipment. He remembered that he had a mining right certificate in his hand, with an estimated value of at least 50 million. I went to the bank and asked, and the bank said that I could mortgage it, but I had to go through "mortgage registration" first. "Mortgage registration? How to do it? Who should I contact? How long will it take?" Mr. Li was confused. The supporting policies of the newly implemented Mineral Resources Law in July 2025 provide a complete answer. Lawyer Liu Jingzhu from Beijing Yingting Law Firm will explain in detail the entire process of mineral rights mortgage registration. **Step 1: Confirm the mortgagor and mortgagee** Mineral rights mortgage is a transaction between the "mining rights holder" and the "financial institution". The mining right holder is the enterprise or individual holding the mining right certificate or the exploration right certificate; the mortgagee is usually a bank or other creditor who is willing to accept the mineral right mortgage. It should be noted that the mining rights must be within the validity period, undisputed, and unsealed. If the mineral rights are subject to the following circumstances, the mortgage registration is likely to be unable to be processed: - The mining rights certificate has been revoked or expired without renewal - There is an ownership dispute over the mineral rights - The mineral rights have been seized by the court or restricted from transfer by the administrative department - The proceeds from the transfer of mining rights have not been paid in full** Step 2: Sign the main creditor's rights contract and the mortgage contract** This is the core link of the entire process. Before lending, the bank will require: 1. Verify the authenticity and value of the mineral rights (usually entrusting an appraisal agency) 2. Conduct due diligence on the mine to confirm that it has actual mining conditions 3. Negotiate and determine core terms such as mortgage amount, interest rate, term, etc. The mortgage contract needs to clarify: the amount of the guaranteed main claim, the debt performance period, and the scope of the mortgage guarantee (principal, interest, liquidated damages, etc.). **Step 3: Prepare application materials** According to the "Temporary Service Guidelines for Registration of Mining Rights Mortgage" issued by the Ministry of Natural Resources in July 2025, the following materials need to be submitted: | Serial number | Material name | Requirements ||------|---------|------|| Original mining right certificate or prospecting right certificate || 4 | Master credit contract | Loan contract, etc. || 5 | Mortgage contract | Separate mortgage contract, or mortgage clause included in the main contract |**Step 4: Submit application to the registration authority** The registration authority is different according to the level of mineral rights: - Oil, natural gas, radioactive minerals, rare earth and other strategic minerals: handled by the Ministry of Natural Resources - Coal, iron, gold, copper and other general minerals: handled by provincial natural resources authorities. After July 2025, the national unified mining rights registration platform has been launched, and applicants can submit electronic materials through the Ministry of Natural Resources government service portal. **Step 5: Wait for review and receive registration certificate** Within 20 working days after acceptance, the registration authority will complete the review. If the conditions are met, the mortgage information will be recorded on the mining rights certificate and a "Mining Rights Mortgage Registration Certificate" will be issued. **Lawyer Ying Ting reminds: Don’t step on these pitfalls** Lawyer Liu Jingzhu reminds the heads of mining companies that there are several common misunderstandings in mineral rights mortgage registration: **Misunderstanding 1: Thinking that everything will be fine after mortgage registration** In fact, mortgage registration only confirms the publicity effect of the mortgage right. If the debtor is unable to repay when due, the bank has the right to apply for an auction of mineral rights, but the auction needs to go through legal procedures and the transferee must have mining qualifications. **Misunderstanding 2: Underestimating the complexity of mineral rights assessment** Mineral rights value assessment involves multiple factors such as resource reserves, market prices, development costs, and policy risks. The reports issued by some appraisal agencies are too watery and banks may not recognize them. **Misunderstanding 3: Ignoring other rights burdens on mineral rights** Some mineral rights may have multiple mortgages, or there may be third-party rights and interests such as leasing and contracting. If you don't find out clearly, subsequent handling will be very troublesome. Beijing Yingtong Law Firm has extensive experience in the field of mineral rights mortgage loans and can provide mining companies with full-process legal services from material preparation to registration. (This article is for reference only. Please consult a professional lawyer for specific questions. This content does not constitute legal advice.)